602 S.W.3d 521
Tex.2020Background
- Burnham Wood Charter School District (The El Paso Education Initiative, Inc.) negotiated a lease with Amex Properties for a Vista del Futuro charter school; Iris Burnham (president/superintendent) signed the lease in late April and the lease recited that signatories had authority to bind their entities.
- Amex’s counsel requested board minutes or a resolution confirming board approval; negotiations continued after Burnham’s signature and Amex’s builder began construction based on arrangements with Amex.
- The district’s board never voted to approve the lease nor adopted a charter amendment delegating contracting authority to Burnham; on May 13 the district repudiated the lease.
- Amex sued for anticipatory breach seeking damages (including some construction costs); the district asserted governmental immunity and contended Chapter 271’s waiver did not apply because the lease was not “properly executed.”
- The trial court denied the district’s plea; the court of appeals held charter schools are governmental entities but found fact issues on proper execution and consequential damages; the Texas Supreme Court granted review.
Issues
| Issue | Amex (Plaintiff) | El Paso (Defendant) | Held |
|---|---|---|---|
| Whether open-enrollment charter schools have governmental immunity | Charters are subject to statutory waiver and the Court should allow suit here | Charters are entitled to governmental immunity to the same extent as public school districts | Yes—charter schools/holders have governmental immunity like school districts |
| Whether the lease was “properly executed” under Local Gov’t Code §271.151(2)(A) | Burnham’s signature and lease recitals create fact issues about her authority to bind the district | Board never approved the lease and no delegation existed, so the lease was not properly executed | Not properly executed—board approval or a commissioner‑approved delegation was required; waiver not triggered |
| Whether “properly executed” is a jurisdictional requirement or a merits defense | Proper execution is a merits question/defense, not jurisdictional | Legislature made proper execution a condition to waiver; it is jurisdictional | Jurisdictional—proper execution is a precondition to the Chapter 271 waiver |
| Whether the district is estopped from asserting immunity | District should be estopped from asserting immunity because of uncertainty when Burnham signed | Subject-matter jurisdiction cannot be created by estoppel; district may assert immunity | No estoppel; immunity cannot be acquired or denied by estoppel |
Key Cases Cited
- Ben Bolt-Palito Blanco Consol. Indep. Sch. Dist. v. Tex. Political Subdivisions Prop./Cas. Joint Self-Ins. Fund, 212 S.W.3d 320 (Tex. 2006) (legislative authorization showing an entity’s governmental character supports recognizing immunity)
- Rosenberg Dev. Corp. v. Imperial Performing Arts, Inc., 571 S.W.3d 738 (Tex. 2019) (declined to extend immunity where immunity’s purposes would not be served)
- Neighborhood Ctrs., Inc. v. Walker, 544 S.W.3d 744 (Tex. 2018) (noted Legislature directed that charter schools have immunity but left common‑law question unresolved)
- Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) (describes immunity’s two components: immunity from suit and immunity from liability)
- City of Houston v. Williams, 353 S.W.3d 128 (Tex. 2011) (party invoking Chapter 271 must have a contract that is “subject to this subchapter”)
- City of Denton v. Rushing, 570 S.W.3d 708 (Tex. 2019) (no waiver under §271.152 unless there is a valid written contract subject to the statute)
